independent

Sunday 20 April 2014

O'Flynn sells UK nursing homes to pay down debts

Michael O’Flynn: managing director of O’Flynn Construction.

Cork-based O'Flynn Construction has sold its loss-making, UK-based nursing homes business as it hives off assets to repay debt to NAMA.

A spokesman for the O'Flynn Group yesterday confirmed the sale of Shelbourne Senior Living Ltd (SSLL) but declined to name the buyer or the price.

The sale by the group to dispose of assets in order to reduce its liabilities is part of a legal agreement reached with NAMA in February of this year.

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It comes as reports have emerged that NAMA has been approached by US investors interested in buying €1.5bn of loans linked to O'Flynn Group.

Accounts recently lodged by SSLL to Companies House in the UK show that the firm reduced its losses last year from £3.9m to £1m after revenues increased from £2m to £2.6m.

The spokesman confirmed that "the O'Flynn Group has completed the legal restructuring of its facilities with NAMA in February of this year".

A note attached to the SSLL accounts states that in addition to satisfying interest repayment obligations as part of the agreement with NAMA, "the facility agreements require that the group progressively reduces its liabilities over an extended period of a number of years through a managed programme of property disposals".

The note continues: "The satisfactory implementation of the group's business plan is dependent on future events and the ongoing satisfactory execution of key commitments attaching to the loan facilities agreed with NAMA, which, by extension, results in some material uncertainty regarding the group's ability to continue as a going concern."

The directors state that they believe that the group will be in a position to meet the commitments attaching to the loan facilities agreed with NAMA.

Irish Independent

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